Class Crisis

The effects of the rapidly declining economy are forcing people to rethink and prioritize their needs and wants. The high cost of goods and services may prove to be a blessing in disguise in the long-term as consumers adopt more frugal behaviors that make good financial sense. In the midst of the worst housing market in years, skyrocketing gas prices, and decreasing consumer confidence, individuals and families are doing without the luxuries that typically signify a thriving capitalist system: one that encourages spending and rewards material wealth.

In an article, Choi (2008) highlights the behavior modifications of consumers from New York. While some forgo costly cab rides, others sacrifice their routine caffeine fix. What’s interesting about this article isn’t the savvy tactics consumers are implementing to cut costs, it’s that the money-saving strategies are similar to those that households with low to moderate incomes are forced to implement, day-to-day, to ensure they have a place to sleep, clothes to wear, and food to eat—the necessities.